As an individual who owned/leased a vehicle, you would need to maintain a log book to calculate extent of any tax deductibilty.
If a trust owned a vehicle that was mixed use (ie trust use and personal use), I would assume that a log book would still be required, as outlined above.
If however, the trust was to provide an allowance for the vehicle, what limits to the amount, if any are imposed by tax law. Is this allowance taxable income for the recipient? For example, some allowances for various professions are tax exempt, what rules are there which govern this (if at all).
I haven’t had any experience in this field, except that my colleagues on higher wages are using personl Leasing (novated leases) to purchase privately owned cars. There is no requirement for them to keep any logs, all services/fuel/ tyres are paid for – they did have to nominatre the K’s that they expected to accumulate during their time with the vehicle. Over (less problematic) or under and you get penalty rates! The whole set-up was done as a tax deduction and they ended up paying less tax.
Sorry that I couldn’t help you more, if at all.
Cheers
C@34
Hi woodsman,
don’t know about the details, but when I asked Dale G-G about the idea he could see difficulties if the vehicle was in the trust. I think he suggested that if you didn’t want to own it as an individual it could be owned by the trustee company, if there is one. This may involve FBT and other tax considerations – professional advice needed?
TerryTerence McMahon
HomeWin
Finance
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